Current Liabiltities

All of the following are current liabilities except:

• Accounts Payable
• Notes Payable
• Dividends Payable
• Bonds Payable

Differences between Accounts Payable and Notes Payable is:

• Interest is charged on a note.
• Accounts payable are long-term debts.
• A note can be switched to an account payable.
• Accounts payable can be either interest-bearing or noninterest-bearing.

Unearned Revenue is classified as a current asset until the service or product has been rendered.

• True
• False

What is paid on the maturity date for an interest-bearing note payable?

• Principal
• Interest
• Principal + Interest
• Proceeds

What is paid on the maturity date for a  noninterest-bearing note payable?

• Principal
• Interest
• Principal + Interest
• Proceeds

The adjusting entry for an interest-bearing note payable at the end of the accounting period is for the accrued interest.

• True
  True
• False

The adjusting entry for a noninterest-bearing note payable at the end of the accounting period is for the accrued interest.

• True
  True
• False

When issuing a noninterest-bearing note payable, you are the

• Payee of the note.
• Maker of the note.
• Drawee of the note.

A prepaid expense is incurred at the issue date of a noninterest-bearing note payable.

• True
• False

A landlord receives $12,000 in advance for a 6-month lease to a tenant for a warehouse she owns on August 31.
What is the entry for the landlord on August 31?

• Debit:  Unearned Rental Revenue
  Credit:  Cash
• Debit:  Earned Rental Revenue
  Credit:  Cash
• Debit:  Cash
  Credit:  Earned Rental Revenue
• Debit: Cash
  Credit: Unearned Rental Revenue